In pursuant to the SEBI circular no CIR/MIRSD/16/2011 dated August 22, 2011 regarding simplification and

rationalization of trading account opening process, the uniform documentation set is to be followed by all the
stock brokers / trading members. In this regard please find the information on the Rights & Obligations, Risk
Disclosure Document, Guidance Note and Policies and Procedures for your reference.
RIGHTS AND OBLIGATIONS OF STOCK BROKERS, SUB-BROKERS AND CLIENTS
as prescribed by SEBI and Stock Exchanges
1. The client shall invest/trade in those securities/contracts/other instruments admitted to dealings on the
Exchanges as defined in the Rules, Byelaws and Regulations of Exchanges/Securities and Exchange Board of
India (SEBI) and circulars/notices issued there under from time to time.
2. The stock broker, sub-broker and the client shall be bound by all the Rules, Byelaws and Regulations of the
Exchanges and circulars/notices issued there under and Rules and Regulations of SEBI and relevant
notifications of Government authorities as may be in force from time to time.
3. The client shall satisfy itself of the capacity of the stock broker to deal in securities and/or deal in derivatives
contracts and wishes to execute its orders through the stock broker and the client shall from time to time
continue to satisfy itself of such capacity of the stock broker before executing orders through the stock broker.
4. The stock broker shall continuously satisfy itself about the genuineness and financial soundness of the client
and investment objectives relevant to the services to be provided.
5. The stock broker shall take steps to make the client aware of the precise nature of the Stock broker's liability
for business to be conducted, including any limitations, the liability and the capacity in which the stock broker
acts.
6. The sub-broker shall provide necessary assistance and co-operate with the stock broker in all its dealings
with the client(s).
CLIENT INFORMATION
7. The client shall furnish all such details in full as are required by the stock broker in "Account Opening Form"
with supporting details, made mandatory by stock exchanges/SEBI from time to time.
8. The client shall familiarize himself with all the mandatory provisions in the Account Opening documents. Any
additional clauses or documents specified by the stock broker shall be non-mandatory, as per terms &
conditions accepted by the client.
9. The client shall immediately notify the stock broker in writing if there is any change in the information in the
'account opening form' as provided at the time of account opening and thereafter; including the information on
winding up petition/insolvency petition or any litigation which may have material bearing on his capacity. The
client shall provide/update the financial information to the stock broker on a periodic basis.
10.The stock broker and sub-broker shall maintain all the details of the client as mentioned in the account
opening form or any other information pertaining to the client, confidentially and that they shall not disclose the
same to any person/authority except as required under any law/regulatory requirements. Provided however
that the stock broker may so disclose information about his client to any person or authority with the express
permission of the client.
MARGINS
11.The client shall pay applicable initial margins, withholding margins, special margins or such other margins as
are considered necessary by the stock broker or the Exchange or as may be directed by SEBI from time to time
as applicable to the segment(s) in which the client trades. The stock broker is permitted in its sole and absolute
discretion to collect additional margins (even though not required by the Exchange, Clearing House/Clearing
Corporation or SEBI) and the client shall be obliged to pay such margins within the stipulated time.
12.The client understands that payment of margins by the client does not necessarily imply complete
satisfaction of all dues. In spite of consistently having paid margins, the client may, on the settlement of its trade,
be obliged to pay (or entitled to receive) such further sums as the contract may dictate/require.
TRANSACTIONS AND SETTLEMENTS
13.The client shall give any order for buy or sell of a security/derivatives contract in writing or in such form or
manner, as may be mutually agreed between the client and the stock broker. The stock broker shall ensure to
place orders and execute the trades of the client, only in the Unique Client Code assigned to that client.

1
14. The stock broker shall inform the client and keep him apprised about trading/settlement cycles,
delivery/payment schedules, any changes therein from time to time, and it shall be the responsibility in turn of
the client to comply with such schedules/procedures of the relevant stock exchange where the trade is
executed.
15. The stock broker shall ensure that the money/securities deposited by the client shall be kept in a separate
account, distinct from his/its own account or account of any other client and shall not be used by the stock broker
for himself/itself or for any other client or for any purpose other than the purposes mentioned in Rules,
Regulations, circulars, notices, guidelines of SEBI and/or Rules, Regulations, Bye-laws, circulars and notices of
Exchange.
16. Where the Exchange(s) cancels trade(s) suo moto all such trades including the trade/s done on behalf of the
client shall ipso facto stand cancelled, stock broker shall be entitled to cancel the respective contract(s) with
client(s).
17. The transactions executed on the Exchange are subject to Rules, Byelaws and Regulations and
circulars/notices issued thereunder of the Exchanges where the trade is executed and all parties to such trade
shall have submitted to the jurisdiction of such court as may be specified by the Byelaws and Regulations of the
Exchanges where the trade is executed for the purpose of giving effect to the provisions of the Rules, Byelaws
and Regulations of the Exchanges and the circulars/notices issued thereunder.
BROKERAGE
18. The Client shall pay to the stock broker brokerage and statutory levies as are prevailing from time to time and
as they apply to the Client's account, transactions and to the services that stock broker renders to the Client. The
stock broker shall not charge brokerage more than the maximum brokerage permissible as per the rules,
regulations and bye-laws of the relevant stock exchanges and/or rules and regulations of SEBI.
LIQUIDATION AND CLOSE OUT OF POSITION
19. Without prejudice to the stock broker's other rights (including the right to refer a matter to arbitration), the
client understands that the stock broker shall be entitled to liquidate/close out all or any of the client's positions
for non-payment of margins or other amounts, outstanding debts, etc. and adjust the proceeds of such
liquidation/close out, if any, against the client's liabilities/obligations. Any and all losses and financial charges on
account of such liquidation/closing-out shall be charged to and borne by the client.
20. In the event of death or insolvency of the client or his/its otherwise becoming incapable of receiving and
paying for or delivering or transferring securities which the client has ordered to be bought or sold, stock broker
may close out the transaction of the client and claim losses, if any, against the estate of the client. The client or
his nominees, successors, heirs and assignee shall be entitled to any surplus which may result there from. The
client shall note that transfer of funds/securities in favor of a Nominee shall be valid discharge by the stock
broker against the legal heir.
21. The stock broker shall bring to the notice of the relevant Exchange the information about default in
payment/delivery and related aspects by a client. In case where defaulting client is a corporate
entity/partnership/proprietary firm or any other artificial legal entity, then the name(s) of
Director(s)/Promoter(s)/Partner(s)/Proprietor as the case may be, shall also be communicated by the stock
broker to the relevant Exchange(s).
DISPUTE RESOLUTION
22. The stock broker shall provide the client with the relevant contact details of the concerned Exchanges and
SEBI.
23. The stock broker shall co-operate in redressing grievances of the client in respect of all transactions routed
through it and in removing objections for bad delivery of shares, rectification of bad delivery, etc.
24. The client and the stock broker shall refer any claims and/or disputes with respect to deposits, margin
money, etc., to arbitration as per the Rules, Byelaws and Regulations of the Exchanges where the trade is
executed and circulars/notices issued thereunder as may be in force from time to time.
25. The stock broker shall ensure faster settlement of any arbitration proceedings arising out of the transactions
entered into between him vis-à-vis the client and he shall be liable to implement the arbitration awards made in
such proceedings.
26. The client/stock-broker understands that the instructions issued by an authorized representative for dispute
resolution, if any, of the client/stock-broker shall be binding on the client/stock-broker in accordance with the
letter authorizing the said representative to deal on behalf of the said client/stock-broker.

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TERMINATION OF RELATIONSHIP
27. This relationship between the stock broker and the client shall be terminated; if the stock broker for any
reason ceases to be a member of the stock exchange including cessation of membership by reason of the stock
broker's default, death, resignation or expulsion or if the certificate is cancelled by the Board.
28. The stock broker, sub-broker and the client shall be entitled to terminate the relationship between them
without giving any reasons to the other party, after giving notice in writing of not less than one month to the other
parties. Notwithstanding any such termination, all rights, liabilities and obligations of the parties arising out of or
in respect of transactions entered into prior to the termination of this relationship shall continue to subsist and
vest in/be binding on the respective parties or his/its respective heirs, executors, administrators, legal
representatives or successors, as the case may be.
29. In the event of demise/insolvency of the sub-broker or the cancellation of his/its registration with the Board
or/withdrawal of recognition of the sub-broker by the stock exchange and/or termination of the agreement with
the sub broker by the stock broker, for any reason whatsoever, the client shall be informed of such termination
and the client shall be deemed to be the direct client of the stock broker and all clauses in the 'Rights and
Obligations' document(s) governing the stock broker, sub-broker and client shall continue to be in force as it is,
unless the client intimates to the stock broker his/its intention to terminate their relationship by giving a notice in
writing of not less than one month.
ADDITIONAL RIGHTS AND OBLIGATIONS
30. The stock broker shall ensure due protection to the client regarding client's rights to dividends, rights or
bonus shares, etc. in respect of transactions routed through it and it shall not do anything which is likely to harm
the interest of the client with whom and for whom they may have had transactions in securities.
31. The stock broker and client shall reconcile and settle their accounts from time to time as per the Rules,
Regulations, Bye Laws, Circulars, Notices and Guidelines issued by SEBI and the relevant Exchanges where
the trade is executed.
32. The stock broker shall issue a contract note to his constituents for trades executed in such format as may be
prescribed by the Exchange from time to time containing records of all transactions including details of order
number, trade number, trade time, trade price, trade quantity, details of the derivatives contract, client code,
brokerage, all charges levied etc. and with all other relevant details as required therein to be filled in and issued
in such manner and within such time as prescribed by the Exchange. The stock broker shall send contract notes
to the investors within one working day of the execution of the trades in hard copy and/or in electronic form using
digital signature.
33. The stock broker shall make pay out of funds or delivery of securities, as the case may be, to the Client within
one working day of receipt of the payout from the relevant Exchange where the trade is executed unless
otherwise specified by the client and subject to such terms and conditions as may be prescribed by the relevant
Exchange from time to time where the trade is executed.
34. The stock broker shall send a complete `Statement of Accounts' for both funds and securities in respect of
each of its clients in such periodicity and format within such time, as may be prescribed by the relevant
Exchange, from time to time, where the trade is executed. The Statement shall also state that the client shall
report errors, if any, in the Statement within such time as may be prescribed by the relevant Exchange from time
to time where the trade was executed, from the receipt thereof to the Stock broker.
35. The stock broker shall send daily margin statements to the clients. Daily Margin statement should include,
inter-alia, details of collateral deposited, collateral utilized and collateral status (available balance/due from
client) with break up in terms of cash, Fixed Deposit Receipts (FDRs), Bank Guarantee and securities.
36. The Client shall ensure that it has the required legal capacity to, and is authorized to, enter into the
relationship with stock broker and is capable of performing his obligations and undertakings hereunder. All
actions required to be taken to ensure compliance of all the transactions, which the Client may enter into shall be
completed by the Client prior to such transaction being entered into.
ELECTRONIC CONTRACT NOTES (ECN)
37. In case, client opts to receive the contract note in electronic form, he shall provide an appropriate e-mail id to
the stock broker. The client shall communicate to the stock broker any change in the email-id through a physical
letter. If the client has opted for internet trading, the request for change of email id may be made through the
secured access by way of client specific user id and password.
38. The stock broker shall ensure that all ECNs sent through the e-mail shall be digitally signed, encrypted, non-
3
tamper able and in compliance with the provisions of the IT Act, 2000. In case, ECN is sent through e-mail as
an attachment, the attached file shall also be secured with the digital signature, encrypted and non-
tamperable.
39. The client shall note that non-receipt of bounced mail notification by the stock broker shall amount to
delivery of the contract note at the e-mail ID of the client.
40. The stock broker shall retain ECN and acknowledgement of the e-mail in a soft and non-tamperable form
in the manner prescribed by the exchange in compliance with the provisions of the IT Act, 2000 and as per the
extant rules/regulations/circulars/guidelines issued by SEBI/Stock Exchanges from time to time. The proof of
delivery i.e., log report generated by the system at the time of sending the contract notes shall be maintained
by the stock broker for the specified period under the extant regulations of SEBI/stock exchanges. The log
report shall provide the details of the contract notes that are not delivered to the client/e-mails rejected or
bounced back. The stock broker shall take all possible steps to ensure receipt of notification of bounced mails
by him at all times within the stipulated time period under the extant regulations of SEBI/stock exchanges.
41. The stock broker shall continue to send contract notes in the physical mode to such clients who do not opt
to receive the contract notes in the electronic form. Wherever the ECNs have not been delivered to the client
or has been rejected (bouncing of mails) by the e-mail ID of the client, the stock broker shall send a physical
contract note to the client within the stipulated time under the extant regulations of SEBI/stock exchanges and
maintain the proof of delivery of such physical contract notes.
42. In addition to the e-mail communication of the ECNs to the client, the stock broker shall simultaneously
publish the ECN on his designated web-site, if any, in a secured way and enable relevant access to the clients
and for this purpose, shall allot a unique user name and password to the client, with an option to the client to
save the contract note electronically and/or take a print out of the same.
LAW AND JURISDICTION
43. In addition to the specific rights set out in this document, the stock broker, sub-broker and the client shall
be entitled to exercise any other rights which the stock broker or the client may have under the Rules, Bye-
laws and Regulations of the Exchanges in which the client chooses to trade and circulars/notices issued
thereunder or Rules and Regulations of SEBI.
44. The provisions of this document shall always be subject to Government notifications, any rules,
regulations, guidelines and circulars/notices issued by SEBI and Rules, Regulations and Bye laws of the
relevant stock exchanges, where the trade is executed, that may be in force from time to time.
45. The stock broker and the client shall abide by any award passed by the Arbitrator(s) under the Arbitration
and Conciliation Act, 1996. However, there is also a provision of appeal within the stock exchanges, if either
party is not satisfied with the arbitration award.
46. Words and expressions which are used in this document but which are not defined herein shall, unless the
context otherwise requires, have the same meaning as assigned thereto in the Rules, Byelaws and
Regulations and circulars/notices issued thereunder of the Exchanges/SEBI.
47. All additional voluntary clauses/document added by the stock broker should not be in contravention with
rules/regulations/notices/circulars of Exchanges/SEBI. Any changes in such voluntary clauses/document(s)
need to be preceded by a notice of 15 days. Any changes in the rights and obligations which are specified by
Exchanges/SEBI shall also be brought to the notice of the clients.
48. If the rights and obligations of the parties hereto are altered by virtue of change in Rules and regulations of
SEBI or Bye-laws, Rules and Regulations of the relevant stock Exchanges where the trade is executed, such
changes shall be deemed to have been incorporated herein in modification of the rights and obligations of the
parties mentioned in this document.

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INTERNET & WIRELESS TECHNOLOGY BASED TRADING FACILITY PROVIDED BY STOCK
BROKERS TO CLIENT
(All the clauses mentioned in the 'Rights and Obligations' document(s) shall be applicable.
Additionally, the clauses mentioned herein shall also be applicable.)
1. Stock broker is eligible for providing Internet based trading (IBT) and securities trading through the use of
wireless technology that shall include the use of devices such as mobile phone, laptop with data card, etc.
which use Internet Protocol (IP). The stock broker shall comply with all requirements applicable to internet
based trading/securities trading using wireless technology as may be specified by SEBI & the Exchanges from
time to time.
2. The client is desirous of investing/trading in securities and for this purpose, the client is desirous of using
either the internet based trading facility or the facility for securities trading through use of wireless technology.
The Stock broker shall provide the Stock broker's IBT Service to the Client, and the Client shall avail of the
Stock broker's IBT Service, on and subject to SEBI/Exchanges Provisions and the terms and conditions
specified on the Stock broker's IBT Web Site provided that they are in line with the norms prescribed by
Exchanges/SEBI.
3. The stock broker shall bring to the notice of client the features, risks, responsibilities, obligations and
liabilities associated with securities trading through wireless technology/internet/smart order routing or any
other technology should be brought to the notice of the client by the stock broker.
4. The stock broker shall make the client aware that the Stock Broker's IBT system itself generates the initial
password and its password policy as stipulated in line with norms prescribed by Exchanges/SEBI.
5. The Client shall be responsible for keeping the Username and Password confidential and secure and shall
be solely responsible for all orders entered and transactions done by any person whosoever through the Stock
broker's IBT System using the Client's Username and/or Password whether or not such person was authorized
to do so. Also the client is aware that authentication technologies and strict security measures are required for
the internet trading/securities trading through wireless technology through order routed system and
undertakes to ensure that the password of the client and/or his authorized representative are not revealed to
any third party including employees and dealers of the stock broker
6. The Client shall immediately notify the Stock broker in writing if he forgets his password, discovers security
flaw in Stock Broker's IBT System, discovers/suspects discrepancies/ unauthorized access through his
username/password/account with full details of such unauthorized use, the date, the manner and the
transactions effected pursuant to such unauthorized use, etc.
7. The Client is fully aware of and understands the risks associated with availing of a service for routing orders
over the internet/securities trading through wireless technology and Client shall be fully liable and responsible
for any and all acts done in the Client's Username/password in any manner whatsoever.
8. The stock broker shall send the order/trade confirmation through email to the client at his request. The client
is aware that the order/ trade confirmation is also provided on the web portal. In case client is trading using
wireless technology, the stock broker shall send the order/trade confirmation on the device of the client.
9. The client is aware that trading over the internet involves many uncertain factors and complex hardware,
software, systems, communication lines, peripherals, etc. are susceptible to interruptions and dislocations.
The Stock broker and the Exchange do not make any representation or warranty that the Stock broker's IBT
Service will be available to the Client at all times without any interruption.
10. The Client shall not have any claim against the Exchange or the Stock broker on account of any suspension,
interruption, non-availability or malfunctioning of the Stock broker's IBT System or Service or the Exchange's
service or systems or non-execution of his orders due to any link/system failure at the Client/Stock
brokers/Exchange end for any reason beyond the control of the stock broker/Exchanges.

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 RISK DISCLOSURE DOCUMENT FOR CAPITAL MARKET AND DERIVATIVES SEGMENTS
This document contains important information on trading in Equities/Derivatives Segments of the stock
exchanges. All prospective constituents should read this document before trading in Equities/Derivatives
Segments of the Exchanges.
Stock exchanges/SEBI does neither singly or jointly and expressly nor impliedly guarantee nor make any
representation concerning the completeness, the adequacy or accuracy of this disclosure document nor have
Stock exchanges /SEBI endorsed or passed any merits of participating in the trading segments. This brief
statement does not disclose all the risks and other significant aspects of trading.
In the light of the risks involved, you should undertake transactions only if you understand the nature of the
relationship into which you are entering and the extent of your exposure to risk.
You must know and appreciate that trading in Equity shares, derivatives contracts or other instruments traded
on the Stock Exchange, which have varying element of risk, is generally not an appropriate avenue for
someone of limited resources/limited investment and/or trading experience and low risk tolerance. You should
therefore carefully consider whether such trading is suitable for you in the light of your financial condition. In
case you trade on Stock exchanges and suffer adverse consequences or loss, you shall be solely responsible
for the same and Stock exchanges/its Clearing Corporation and/or SEBI shall not be responsible, in any
manner whatsoever, for the same and it will not be open for you to take a plea that no adequate disclosure
regarding the risks involved was made or that you were not explained the full risk involved by the concerned
stock broker. The constituent shall be solely responsible for the consequences and no contract can be
rescinded on that account. You must acknowledge and accept that there can be no guarantee of profits or no
exception from losses while executing orders for purchase and/or sale of a derivative contract being traded on
Stock exchanges.
It must be clearly understood by you that your dealings on Stock exchanges through a stock broker shall be
subject to your fulfilling certain formalities set out by the stock broker, which may inter alia include your filling the
know your client form, reading the rights and obligations, do's and don'ts, etc., and are subject to the Rules,
Byelaws and Regulations of relevant Stock exchanges, its Clearing Corporation, guidelines prescribed by SEBI
and in force from time to time and Circulars as may be issued by Stock exchanges or its Clearing Corporation
and in force from time to time.
Stock exchanges does not provide or purport to provide any advice and shall not be liable to any person who
enters into any business relationship with any stock broker of Stock exchanges and/or any third party based on
any information contained in this document. Any information contained in this document must not be construed
as business advice. No consideration to trade should be made without thoroughly understanding and reviewing
the risks involved in such trading. If you are unsure, you must seek professional advice on the same.
In considering whether to trade or authorize someone to trade for you, you should be aware of or must get
acquainted with the following:-
1. BASIC RISKS:
1.1 Risk of Higher Volatility:
Volatility refers to the dynamic changes in price that a security/derivatives contract undergoes when trading
activity continues on the Stock Exchanges. Generally, higher the volatility of a security/derivatives contract,
greater is its price swings. There may be normally greater volatility in thinly traded securities / derivatives
contracts than in active securities /derivatives contracts. As a result of volatility, your order may only be partially
executed or not executed at all, or the price at which your order got executed may be substantially different from
the last traded price or change substantially thereafter, resulting in notional or real losses.
1.2 Risk of Lower Liquidity:
Liquidity refers to the ability of market participants to buy and/or sell securities / derivatives contracts
expeditiously at a competitive price and with minimal price difference. Generally, it is assumed that more the
numbers of orders available in a market, greater is the liquidity. Liquidity is important because with greater
liquidity, it is easier for investors to buy and/or sell securities / derivatives contracts swiftly and with minimal price
difference, and as a result, investors are more likely to pay or receive a competitive price for securities /
derivatives contracts purchased or sold. There may be a risk of lower liquidity in some securities / derivatives
contracts as compared to active securities / derivatives contracts. As a result, your order may only be partially
executed, or may be executed with relatively greater price difference or may not be executed at all.
.

6
1.2.1 Buying or selling securities / derivatives contracts as part of a day trading strategy may also result into
losses, because in such a situation, securities / derivatives contracts may have to be sold / purchased at low /
high prices, compared to the expected price levels, so as not to have any open position or obligation to deliver or
receive a security / derivatives contract.
1.3 Risk of Wider Spreads:
Spread refers to the difference in best buy price and best sell price. It represents the differential between the
price of buying a security / derivatives contract and immediately selling it or vice versa. Lower liquidity and
higher volatility may result in wider than normal spreads for less liquid or illiquid securities / derivatives
contracts. This in turn will hamper better price formation.
1.4 Risk-reducing orders:
The placing of orders (e.g., "stop loss" orders, or "limit" orders) which are intended to limit losses to certain
amounts may not be effective many a time because rapid movement in market conditions may make it
impossible to execute such orders.
1.4.1 A "market" order will be executed promptly, subject to availability of orders on opposite side, without
regard to price and that, while the customer may receive a prompt execution of a "market" order, the execution
may be at available prices of outstanding orders, which satisfy the order quantity, on price time priority. It may be
understood that these prices may be significantly different from the last traded price or the best price in that
security / derivatives contract.
1.4.2 A "limit" order will be executed only at the "limit" price specified for the order or a better price. However,
while the customer receives price protection, there is a possibility that the order may not be executed at all.
1.4.3 A stop loss order is generally placed "away" from the current price of a stock / derivatives contract, and
such order gets activated if and when the security / derivatives contract reaches, or trades through, the stop
price. Sell stop orders are entered ordinarily below the current price, and buy stop orders are entered ordinarily
above the current price. When the security / derivatives contract reaches the pre -determined price, or trades
through such price, the stop loss order converts to a market/limit order and is executed at the limit or better.
There is no assurance therefore that the limit order will be executable since a security / derivatives contract
might penetrate the pre-determined price, in which case, the risk of such order not getting executed arises, just
as with a regular limit order.
1.5 Risk of News Announcements:
News announcements that may impact the price of stock / derivatives contract may occur during trading, and
when combined with lower liquidity and higher volatility, may suddenly cause an unexpected positive or
negative movement in the price of the security / contract.
1.6 Risk of Rumors:
Rumors about companies / currencies at times float in the market through word of mouth, newspapers,
websites or news agencies, etc. The investors should be wary of and should desist from acting on rumors.
1.7 System Risk:
High volume trading will frequently occur at the market opening and before market close. Such high volumes
may also occur at any point in the day. These may cause delays in order execution or confirmation.
1.7.1 During periods of volatility, on account of market participants continuously modifying their order quantity
or prices or placing fresh orders, there may be delays in order execution and its confirmations.
1.7.2 Under certain market conditions, it may be difficult or impossible to liquidate a position in the market at a
reasonable price or at all, when there are no outstanding orders either on the buy side or the sell side, or if
trading is halted in a security / derivatives contract due to any action on account of unusual trading activity or
security / derivatives contract hitting circuit filters or for any other reason.
1.8 System/Network Congestion:
Trading on exchanges is in electronic mode, based on satellite/leased line based communications,
combination of technologies and computer systems to place and route orders. Thus, there exists a possibility of
communication failure or system problems or slow or delayed response from system or trading halt, or any such
other problem/glitch whereby not being able to establish access to the trading system/network, which may be
beyond control and may result in delay in processing or not processing buy or sell orders either in part or in full.
You are cautioned to note that although these problems may be temporary in nature, but when you have
outstanding open positions or unexecuted orders, these represent a risk because of your obligations to settle all

7
executed transactions.
2. As far as Derivatives segments are concerned, please note and get yourself acquainted with the
following additional features:-
2.1 Effect of "Leverage" or "Gearing":
In the derivatives market, the amount of margin is small relative to the value of the derivatives contract so the
transactions are 'leveraged' or 'geared'. Derivatives trading, which is conducted with a relatively small amount
of margin, provides the possibility of great profit or loss in comparison with the margin amount. But transactions
in derivatives carry a high degree of risk.
You should therefore completely understand the following statements before actually trading in derivatives and
also trade with caution while taking into account one's circumstances, financial resources, etc. If the prices
move against you, you may lose a part of or whole margin amount in a relatively short period of time. Moreover,
the loss may exceed the original margin amount
.

A. Futures trading involve daily settlement of all positions. Every day the open positions are marked to market
based on the closing level of the index / derivatives contract. If the contract has moved against you, you will be
required to deposit the amount of loss (notional) resulting from such movement. This amount will have to be
paid within a stipulated time frame, generally before commencement of trading on next day.
B. If you fail to deposit the additional amount by the deadline or if an outstanding debt occurs in your account,
the stock broker may liquidate a part of or the whole position or substitute securities. In this case, you will be
liable for any losses incurred due to such close-outs
.

C. Under certain market conditions, an investor may find it difficult or impossible to execute transactions. For
example, this situation can occur due to factors such as illiquidity i.e. when there are insufficient bids or offers or
suspension of trading due to price limit or circuit breakers etc.
D. In order to maintain market stability, the following steps may be adopted: changes in the margin rate,
increases in the cash margin rate or others. These new measures may also be applied to the existing open
interests. In such conditions, you will be required to put up additional margins or reduce your positions.
E. You must ask your broker to provide the full details of derivatives contracts you plan to trade i.e. the contract
specifications and the associated obligations.
2.2 Currency specific risks:
1. The profit or loss in transactions in foreign currency-denominated contracts, whether they are traded in your
own or another jurisdiction, will be affected by fluctuations in currency rates where there is a need to convert
from the currency denomination of the contract to another currency.
2. Under certain market conditions, you may find it difficult or impossible to liquidate a position. This can occur,
for example when a currency is deregulated or fixed trading bands are widened.
3. Currency prices are highly volatile. Price movements for currencies are influenced by, among other things:
changing supply-demand relationships; trade, fiscal, monetary, exchange control programs and policies of
governments; foreign political and economic events and policies; changes in national and international interest
rates and inflation; currency devaluation; and sentiment of the market place. None of these factors can be
controlled by any individual advisor and no assurance can be given that an advisor's advice will result in
profitable trades for a participating customer or that a customer will not incur losses from such events.
2.3 Risk of Option holders:
1. An option holder runs the risk of losing the entire amount paid for the option in a relatively short period of time.
This risk reflects the nature of an option as a wasting asset which becomes worthless when it expires. An option
holder who neither sells his option in the secondary market nor exercises it prior to its expiration will necessarily
lose his entire investment in the option. If the price of the underlying does not change in the anticipated direction
before the option expires, to an extent sufficient to cover the cost of the option, the investor may lose all or a
significant part of his investment in the option.
2. The Exchanges may impose exercise restrictions and have absolute authority to restrict the exercise of
options at certain times in specified circumstances.
2.4 Risks of Option Writers:
1. If the price movement of the underlying is not in the anticipated direction, the option writer runs the risks of
losing substantial amount.
2. The risk of being an option writer may be reduced by the purchase of other options on the same underlying
interest and thereby assuming a spread position or by acquiring other types of hedging positions in the options
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markets or other markets. However, even where the writer has assumed a spread or other hedging position, the
risks may still be significant. A spread position is not necessarily less risky than a simple 'long' or 'short' position.
3. Transactions that involve buying and writing multiple options in combination, or buying or writing options in
combination with buying or selling short the underlying interests, present additional risks to investors.
Combination transactions, such as option spreads, are more complex than buying or writing a single option.
And it should be further noted that, as in any area of investing, a complexity not well understood is, in itself, a risk
factor. While this is not to suggest that combination strategies should not be considered, it is advisable, as is the
case with all investments in options, to consult with someone who is experienced and knowledgeable with
respect to the risks and potential rewards of combination transactions under various market circumstances.
3. TRADING THROUGH WIRELESS TECHNOLOGY/ SMART ORDER ROUTING OR ANY OTHER
TECHNOLOGY:
Any additional provisions defining the features, risks, responsibilities, obligations and liabilities associated with
securities trading through wireless technology/ smart order routing or any other technology should be brought
to the notice of the client by the stock broker.

4. GENERAL
4.1 The term 'constituent' shall mean and include a client, a customer or an investor, who deals with a stock
broker for the purpose of acquiring and/or selling of securities / derivatives contracts through the mechanism
provided by the Exchanges.

4.2 The term 'stock broker' shall mean and include a stock broker, a broker or a stock broker, who has been
admitted as such by the Exchanges and who holds a registration certificate from SEBI.

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GUIDANCE NOTE - DO's AND DON'Ts FOR TRADING ON THE EXCHANGE(S) FOR INVESTORS
BEFORE YOU BEGIN TO TRADE
1. Ensure that you deal with and through only SEBI registered intermediaries. You may check their SEBI
registration certificate number from the list available on the Stock exchanges
www.nseindia.com/www.bseindia.com and SEBI website www.sebi.gov.in.
2. Ensure that you fill the KYC form completely and strike off the blank fields in the KYC form.
3. Ensure that you have read all the mandatory documents viz. Rights and Obligations, Risk Disclosure
Document, Policy and Procedure document of the stock broker.
4. Ensure to read, understand and then sign the voluntary clauses, if any, agreed between you and the
stock broker. Note that the clauses as agreed between you and the stock broker cannot be changed without
your consent.
5. Get a clear idea about all brokerage, commissions, fees and other charges levied by the broker on you for
trading and the relevant provisions/ guidelines specified by SEBI/Stock exchanges.
6. Obtain a copy of all the documents executed by you from the stock broker free of charge.
7. In case you wish to execute Power of Attorney (POA) in favour of the Stock broker, authorizing it to
operate your bank and demat account, please refer to the guidelines issued by SEBI/Exchanges in this
regard.
TRANSACTIONS AND SETTLEMENTS
8. The stock broker may issue electronic contract notes (ECN) if specifically authorized by you in writing.
You should provide your email id to the stock broker for the same. Don't opt for ECN if you are not familiar
with computers.
9. Don't share your internet trading account's password with anyone.
10. Don't make any payment in cash to the stock broker.
11. Make the payments by account payee cheque in favour of the stock broker. Don't issue cheques in the
name of sub-broker. Ensure that you have a documentary proof of your payment/deposit of securities with
the stock broker, stating date, scrip, quantity, towards which bank/ demat account such money or securities
deposited and from which bank/ demat account.
12. Note that facility of Trade Verification is available on stock exchanges' websites, where details of trade
as mentioned in the contract note may be verified. Where trade details on the website do not tally with the
details mentioned in the contract note, immediately get in touch with the Investors Grievance Cell of the
relevant Stock exchange.
13. In case you have given specific authorization for maintaining running account, payout of funds or
delivery of securities (as the case may be), may not be made to you within one working day from the receipt
of payout from the Exchange. Thus, the stock broker shall maintain running account for you subject to the
following conditions:
a) Such authorization from you shall be dated, signed by you only and contains the clause that you may
revoke the same at any time.

b) The actual settlement of funds and securities shall be done by the stock broker, at least once in a
calendar quarter or month, depending on your preference. While settling the account, the stock broker shall
send to you a 'statement of accounts' containing an extract from the client ledger for funds and an extract
from the register of securities displaying all the receipts/deliveries of funds and securities. The statement
shall also explain the retention of funds and securities and the details of the pledged shares, if any.

c) On the date of settlement, the stock broker may retain the requisite securities/funds towards outstanding
obligations and may also retain the funds expected to be required to meet derivatives margin obligations for
next 5 trading days, calculated in the manner specified by the exchanges. In respect of cash market

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transactions, the stock broker may retain entire pay-in obligation of funds and securities due from clients as
on date of settlement and for next day's business, he may retain funds/securities/margin to the extent of
value of transactions executed on the day of such settlement in the cash market.
d) You need to bring any dispute arising from the statement of account or settlement so made to the notice
of the stock broker in writing preferably within 7 (seven) working days from the date of receipt of
funds/securities or statement, as the case may be. In case of dispute, refer the matter in writing to the
Investors Grievance Cell of the relevant Stock exchanges without delay.
14. In case you have not opted for maintaining running account and pay-out of funds/securities is not
received on the next working day of the receipt of payout from the exchanges, please refer the matter to the
stock broker. In case there is dispute, ensure that you lodge a complaint in writing immediately with the
Investors Grievance Cell of the relevant Stock exchange.
15. Please register your mobile number and email id with the stock broker, to receive trade confirmation
alerts/ details of the transactions through SMS or email, by the end of the trading day, from the stock
exchanges.
IN CASE OF TERMINATION OF TRADING MEMBERSHIP
16. In case, a stock broker surrenders his membership, is expelled from membership or declared a
defaulter; Stock exchanges gives a public notice inviting claims relating to only the "transactions executed
on the trading system" of Stock exchange, from the investors. Ensure that you lodge a claim with the
relevant Stock exchanges within the stipulated period and with the supporting documents.
17. Familiarize yourself with the protection accorded to the money and/or securities you may deposit with
your stock broker, particularly in the event of a default or the stock broker's insolvency or bankruptcy and the
extent to which you may recover such money and/or securities may be governed by the Bye-laws and
Regulations of the relevant Stock exchange where the trade was executed and the scheme of the Investors'
Protection Fund in force from time to time.
DISPUTES/ COMPLAINTS
18. Please note that the details of the arbitration proceedings, penal action against the brokers and investor
complaints against the stock brokers are displayed on the website of the relevant Stock exchange.
19. In case your issue/problem/grievance is not being sorted out by concerned stock broker/sub-broker
then you may take up the matter with the concerned Stock exchange. If you are not satisfied with the
resolution of your complaint then you can escalate the matter to SEBI.
20. Note that all the stock broker/sub-brokers have been mandated by SEBI to designate an e-mail ID of the
grievance redressal division/compliance officer exclusively for the purpose of registering complaints.

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 POLICIES AND PROCEDURES
(Reference para 8 of SEBI Circular No. MIRSD/SE/CIR-19/2009 dated
December 03,2009
A. Refusal of orders penny stocks etc.
The stock broker may at his discretion refuse to execute any buy or sell on behalf of the client including but not
restricted to dealings in penny stocks, illiquid stocks, infrequently traded stocks/contract etc if the stock Broker
is of the view that such execution would adversely affect market integrity or give rise to regulatory / disciplinary
actions/ concerns. The penny stock would mean any stock trading at a price less than Rs. 10 or at a price less
than the face value or any other stock specified by the Regulatory Body/Stock Exchange as such or which are
appearing in the list of illiquid securities issued by the Exchanges every month. In general terms, a is a low-
priced, speculative security or a very small company, regardless of market capitalization.
B. Setting up client's exposure limits
The Stock Broker may at his discretion permit/allow such exposure limit for trading by Client as he deems fit.
Such exposure limit may operate specific to a security or contract and/or on an aggregate basis whether on the
buy or the sell side, based on the Stock Broker's assessment of the associated risks having due regard to all
relevant factors. Further, the Stock Broker may modify, change or alter such limit or the conditions attached
thereto from time to time as may be deemed fit.
C. Brokerage Rates
Brokerage will be charged within the limits prescribed by SEBI/Exchange.
D. Imposition of penalty/Delayed Payment Charges:
The Client shall pay the Stock Broker brokerage, commission, fees, account opening/ maintenance charges,
charges for availing research reports, charges for availing special facility for mobile broking /SMS facility or any
other charges for the special services/ facilities availed by the Client, inter settlement charges, auction charges,
penalties levied by the exchanges for client limit violation, charges for dishonour of cheque(s) given by the
client, statutory levies, service tax, and other taxes and trade/transaction expenses including inter alia
depository charges, settlement charges etc. as are applicable from time to time. If the Client fails to make
payment of the amount due within the time frame specified by the Bye-laws, Rules and Regulations of the
Exchange and/or as per the policy of the Stock Broker, Stock Broker shall be entitled to levy such charges by
way of penalty or delayed payment charges not exceeding 18% per annum on amount due as the Stock Broker
may deem fit and to directly debit the same to the Client account. The Client authorizes the Stock Broker to set
off a part or whole of the collateral/ ledger balances i.e. By way of appropriation of the relevant amount of cash
or by way of sales or transfer of all or some of the securities, without notice, or invoke the pledged shares placed
as margin/collateral with the Stock Broker, and/ or any credit in any account of the Client in any of the segment
of the Stock Exchange, against the outstanding/dues, to the extent of settlement / margin obligation in the
account of the Client for any segment of the Stock Exchanges. The adjustment, so done, shall be by way of a
passing necessary journal voucher entries. Further, the Stock Broker agree to pay penalty charges not
exceeding 18% Per annum on amount due to the client if the same is not refunded to the client in time after
receipt of pay out request from the Client.
E. The Right to sell Client's securities or to close Client's positions without notice to Client
If a client fails to make payment of consideration to the Stock Broker in respect of any one or more securities
purchased by him before the pay-in date notified by the Exchange from time to time, the Stock Broker shall be at
liberty to sell / liquidate the securities received in pay-out, as per the policy of the Stock Broker, after taking into
account any amount lying to the credit of the Client. The loss, if any on account of liquidation shall any on
account of liquidation shall be to the account of the Client. Without prejudice to the Stock Broker's other rights
the Stock broker shall be entitled to liquidate/close out all or any of the Client's positions, without giving notice to
the Client, for non-payment of margins or other amounts, outstanding debts, etc. Any and all losses and
financial charges on account of such liquidation/closing-out shall be charged to and borne by the Client.
F. Shortages in obligations arising out of internal netting of trades.
If the Client fails to deliver any one or more securities to the pool account of the Stock Broker in respect of the
securities sold by him which turns out to be an internal position, before the pay-in date notified by the Exchange
from time to time, such undischarged obligation in relation to delivering, any one or more securities shall be
purchased on his behalf by the Stock Broker. However, in case for any reason, whatsoever the Stock broker is
unable to buy such quantity the outstanding obligation of the Client shall be subject to close out procedures as
defined by the Exchange from time to time. The loss, if any, on account of the close out shall be to the account of
the Client.
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G. Conditions under which Client may not be allowed to take further position or the Stock Broker may
close the existing position of the Client
The Stock Broker may at any time at his discretion disallow the Client from creating further/fresh position in
any segment on any exchange or close out any existing position of the Client based on his risk assessment or
if so directed by any government / regulatory stock exchange authority.
H. Temporary Suspension /Closure of a client's Account
The stock Broker shall if so required in writing by the Client temporarily suspend/ disable trading in the Client's
account unless so required for the purpose of closing of transactions referred to in (E)and (G) above and
maintain such suspension/disablement till such time the Client makes a specific request in that regard. Stock
Broker as a protective measure and also good governance carries out internal checks on the transactional
activities in the clients accounts to verify trading in dormant accounts, trading in illiquid scripts, any
manipulated activities by the Client's (detectable), ECN bounces and trading activities not commensurate with
income declared, other money laundering activities, first time trade in future and options, spurt in volumes and
any other activities which broker may feel is derogatory/detrimental to the market or client. These activities are
carried out as proactive measures and some of them as various regulatory requirements. In above cases,
Stock Broker may deactivate the client account in the system for the purpose of further trading activity with or
without notice. The Client agrees to co operate with the Stock Broker to maintain the integrity of the market and
also to facilitate Stock Broker to provide safe trading platform to all its clients. Stock Brokers or its employees
or employees of any its group companies will not be held liable for his acts for any of the losses or notional
losses that may occur in your account due to any of the above actions.
I. Deregistration of a Client
The Stock Broker may at any time, as it considers necessary in its sole discretion and shall be entitled, at his
absolute discretion to not to allow the Client to trade, unless such Client provides margins to the extent as may
be specified by the Stock Broker considering the risk factor.
The Stock Broker shall be entitled to suspend or terminate this agreement without prior notice if
1. The Client has breached this Agreement:
2. Upon the death, winding up, bankruptcy, liquidation or legal capaciation of the Client or is designated
3. The Client fails to maintain the Bank Account and/or the Securities Account (Or any replacement thereof) as
a defaulter by any credit rating agency or any action or proceedings have been initiated by the relevant
Regulator/Authority including without limitation SEBI:
4. The Client has misrepresented facts at the time of entering into this Agreement or at the time of giving
instructions or otherwise.
5. Any proceedings or investigations that involve the Client or his/its properties have been initiated or is
ongoing.
6. The client fails to fulfill his/its payment obligations under this Agreement or otherwise due to the Stock
Broker;
7. The Client has violated the Applicable law particularly the securities Law and Bye-laws, Rules and
Regulations of the respective Stock Exchanges on which the Client trades,
8. If the client migrates to a jurisdiction which prohibits trading in Indian securities or otherwise subjects the
Stock Broker or any of its employees to any licensing or registration requirements.
J. Inactive Accounts
A Trading Account is which no trades are done across in any segment of any exchange for Ninety days would
be termed as “Inactive” or “Dormant” trading account. The Stock Broker does not freeze any “Inactive” or
“Dormant” trading account. However, any trade emanating from such trading accounts pursuant to the same
being classified as “Inactive” or “Dormant” trading account would be subject to necessary due diligences and
confirmations as the Stock Broker may deem fit.
The Stock Broker shall be entitled to change or alter this Policy or any part thereof, without giving any reason
thereof to the Client. Notwithstanding any such change or alteration all rights, liabilities and obligations of the
parties arising out of or in respect of transactions entered into prior to such change or alteration shall continue
to subsist and vest in / be binding on the respective heirs, executors, administrators, legal representative or
successors, as the case may be. Notice of such alteration may be provided by the Stock Broker by updating
the same on the website. The Client is bound by such online change or alterations.

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This is must read/ understood and to be complied by everybody dealing/ desirous in dealing in Capital
and / or Derivatives (including Currency Derivative)
1. Prevention of Money Laundering Act, 2002 (PMLA) is enacted to prevent the financing of terrorism and to
prevent laundering of money i.e. to legalize or officialize or canalise the money generated from illegal activities
like drug trafficking, organized crimes, hawala rackets and other serious crimes etc.
2. PMLA is a part of the Global measures being taken by all the countries under the initiatives of United Nations.
3. It is an obligation of individual/entities to whom PMLA is applicable, to report certain kind of transactions routed
through them to Financial Intelligence Unit (FIU), a department specially set up to administer PMLA under the
Ministry of Finance.
4. PMLA is, inter-alia, applicable to various intermediaries which includes stock brokers, commodity brokers,
sub-brokers, authorised person and depository participant etc.
5. As per PMLA the following type of transaction are to be reported to FIU: -
(A). All cash transactions of the value of more than Rs. 10 Lacs or its equivalent in foreign currency. (B). All series
of cash transactions integrally connected to each other which have been valued below Rs. 10 Lacs or its
equivalent in foreign currency where such series of transactions takes place within one calendar month. (C). All
suspicious transactions whether or not made in cash and including, inter-alia, credits or debits into a n y n o n
monetary accounts such as demat account.
6. Any such above transaction(s), though not executed but attempted and failed are also required to be reported
7. The suspicious transaction(s) can be related to the transaction(s) under the circumstances such as: -
(A). Client(s) whose identity verification seems difficult or client(s) that appear not to co-operate;(B). Asset
management services for client(s) where the source of the funds is not clear or not in keeping with client(s)
apparent standing /business activity; (C). Client(s) based in high risk jurisdictions; (D). Substantial increases in
business without apparent cause; (E). Client(s) transferring large sum of money to or from overseas locations
with instructions for payment in cash; (F). Attempted transfer of investment proceeds to apparently unrelated
third parties; (G). Businesses undertaken by offshore banks/financial services; (H). Businesses reported to be in
the nature of export/import of small items; (I). Unusual transactions by Clients of Special Categories (CSCs).
8. Clients of Special Categories includes: -
(A). Non-resident client; (B). High net-worth client (having annual income + networth of more than Rs. 1 Crore);
(C). Trust, Charities NGOs and organizations receiving donations; (D). Company having close family
shareholdings or beneficial ownership; (E). Civil Servant or family member or close relative of civil servant;
(F). Bureaucrat or family member or close relative of bureaucrat; (G). Current or Former MP or MLA or MLC or
their family member or close relative; (H). Politician or their family member or close relative; (I). Current or
Former Head of State or of Governments or their family member or close relative; (J). Senior government/judicial/
military officers or their family member or close relative; (K). Senior executives of state-owned corporations or
their family member or close relative; (L). Companies offering foreign exchange offerings;
9. While opening the new account all the prescribed procedures of KYC and Client Identifications should
strictly be followed in the context of ensuring the compliance under PMLA.
10. All the record of transaction(s) and client identifications must be preserved in a manner which can be retrieved
promptly and reported to the authorities in the specified format as and when required.
11. The Clients are advised to be fully conversant with the provisions of PMLA and any amendments thereto from
time to time and to co-operate with intermediaries by providing the additional information(s)/document(s), if
asked for, to ensure the compliance requirements under PMLA.
12. The Client are advised to provide certain information which may be of personal nature or has hitherto never
been called for such information can include documents evidencing source of funds/income taxreturns/bank
records etc. You are advised to co-operate with us whenever such information is sought for from PMLA
perspective.
13. The Clients are advised to be vigilant and to refrain from temptation of easy monetary gains, by knowingly or
unknowingly supporting the people who are involved in the activities which are endangering freedom and
causing damage to the nation. The Clients are supposed to provide their active co-operation in the due
compliance of the law.
14. Please visit the website of Financial Intelligence Unit (www.fiuindia.gov.in) and Securities and Exchange
Board of India (www.sebi.gov.in) for any further information on the subject.

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